Cooperative society holds primary authority to decide membership applications per bye-laws, subject to Registrar appeal; regulatory committee cannot directly reject but only oversee eligibility post-induction, without overriding statutory family definition.

JUDGMENT :

Jyotsna Rewal Dua, J

The Regulatory Committee-respondent No.5 rejected petitioners’ applications on 14.02.2025 (Annexure P-18) for becoming members of respondent No.6-Society. Based upon this decision a resolution was passed on 21.04.2025 by respondent No.6-Soceity cancelling memberships of petitioners. Aggrieved, petitioners have instituted this petition.

2. Heard learned counsel for the parties and considered the case file.

3. Following facts are not in dispute: -

3(i) Respondent No.6 is a Society registered on 24.03.2000 under the provisions of Himachal Pradesh Cooperative Societies Act, 1968. Its Byelaws have been duly approved by the competent authority. Membership of the Society is governed by its Byelaws, relevant to the context are reproduced hereunder: -

“6. Subject to the provisions of Act, Rules and the Bye-Laws, any individual who is hereditary resident of area of operation and also having ancestral land shall be eligible for admission as member of the society if he/she owns trucks, but not more than 3 trucks.

Provided that:-

a) an individual who has got valid papers indicating there in that, he/she will be able to have one truck within a period of one year in any one of the above systems i.e. ownership, shall also be eligible to become member of the Society.

b) the person who has hereditary land rights in the area of operation of the society and whose land has been acquired for plant site, Conveyor Belt and for the Mines & not for any other purposes in the above panchayats.

c) not more than one person from a family shall be enrolled as member.

d) A member shall not be entitled to have more than three trucks at a time.

e) a member shall have to submit land loosers certificate within three months from Revenue Authority.

7. No individual shall be member of the society, if,

i) he has applied for bankruptcy.

ii) he has been declared insolvent

ⅲ) he has been sentenced for dishonesty or moral turpitude.

8. Application for admission as members shall be disposed of by the Managing Committee subject to approval of General Body. If the Managing Committee or General Body refuses to admit a person, it shall record its reasons for refusal and communicate them to the person, concerned. Any person, who has been refused admission shall have the right of an appeal to the Registrar within one month of the date of communication of refusal. The decision of the Registrar on such appeal shall be binding on the society and the appellant.

9. ……

10. Every member on the admission shall sign his name or make his thumbmark in the register of members and shall pay an admission fee of Rs.100@.

11-17…………

18. Each member shall purchase at least one share of the value of Rs. 5000/- each in lump sum at the time of admission.”

Under Bye-law No. 28(iv), the General Body of the Society has been vested with powers of confirmation of the admission of the members.

In accordance with above Bye-laws, the petitioners applied for the membership of respondent No.6-Society by depositing the requisite admission and membership fees etc. Respondent No.6-Society accepted the share money and membership fees deposited by the petitioners. Membership of petitioner No.1 was confirmed on 27.04.2014, whereas, membership of petitioners No.2 & 3 were confirmed on 05.06.2016.

3(ii) In the meanwhile, the District Magistrate, Solan, issued an office order on 26.03.2010 constituting a Regulatory Committee for looking into the enrollment of new members of the societies operating in the area in order to avoid membership disputes. The reasons for constituting the Regulatory Committee were assigned as under in the order: -

“During the above mentioned meetings/deliberations it came to the notice of the undersigned that some of the Transport Societies have been flouting the provisions of earlier orders vis-a-vis issue of new membership and number of trucks